PdfPrep.com

Which of the following is not taken into account by the discount factor applied to future earnings when calculating shareholder value?

Which of the following is not taken into account by the discount factor applied to future earnings when calculating shareholder value?
A . Shareholders rate of time preference for money
B . The amount of earnings that will be lost as taxation
C . The amount of risk the investment is subject to
D . The rate of inflation

Answer: B

Exit mobile version